Restaurant menu costing and margin

What the restaurant menu costing and margin does

Most restaurants know what dishes sell but not what they earn. List each dish with the cost of its ingredients and a share of labour and overhead, and the workbook works out the total cost, the gross profit and margin, the food cost percentage and the price you would need to reach your target food cost, with a flag on the dishes to reprice.

Who it is for

Restaurant, cafe and catering owners and chefs who want to price a menu properly and see which dishes make money.

How to use the workbook

1. Set your target food cost percentage on the Rates sheet.
2. List each dish with its ingredient cost and the labour and overhead you assign to it.
3. Enter the price you charge.
4. Read the margin, the food cost and the status, and reprice dishes marked for it.
5. Save a copy under a new name for each month or year, so earlier records stay as they were.

What is inside

• Ingredient cost, labour and overhead per dish
• Gross profit, margin and food cost percentage
• Suggested price for your target food cost
• A reprice or OK flag per dish
• Average margin for the menu

The workbook has these sheets: Instructions, Menu, Rates. The main table has the columns Dish; Ingredient cost; Labour and overhead; Total cost; Selling price; Gross profit; Margin; Food cost %. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.

Tips for getting it right

• Cost ingredients at current supplier prices, including waste and trimming.
• Include drinks and sides in the menu analysis.
• Review costs every quarter; prices move.
• Remember VAT: decide whether your prices include it.

Why keep this record

Running a business on memory works until it grows. Writing the numbers down turns opinions into facts you can compare month to month, and shows early which products, customers or costs deserve attention. Even a simple workbook, used every week, usually beats a sophisticated one that is opened once a year.

Questions people ask

Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.

Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.

Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.

Keeping it safe and up to date

A plan is only as good as the numbers you put in. Start with honest estimates, update the workbook as real figures arrive, and compare the two so your next estimate is better. Save a dated copy each month so you can see how your thinking changed.

Read how to build a cash flow forecast for the wider picture. See more business templates or ask us for a custom one.

The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.

Related guides, calculators and templates

• Guide: How to build a 12-month cash flow forecast for a small business
• Guide: How to price your products and services: markup, margin and break-even
• Guide: Turnover tax for small businesses in Kenya: rate, limits and when to use it
• Another template: 12-month cash flow forecast
• Another template: Break-even and pricing calculator
• Another template: Budget versus actual tracker

Need something different? Request a custom template, browse all guides or see every Excel template.